The Wisconsin-based company released its National Apartment Report earlier this month, which showed that Colorado Springs saw a 5-percent increase (from $868 to $908) in average rent for one-bedroom apartments from September to October.
“There is a lot of pressure on rental properties in Colorado Springs,” said Sam Radbil, Abodo’s senior communications manager. “Millennials are renting apartments for longer periods of time than the generations that came before them, housing inventory is tighter, the housing crash has scared a lot of potential homeowners and one group that many people forget about is now renting — Baby Boomers. Baby Boomers are downsizing and looking for a more convenient lifestyle in trendier areas of the city. All of these factors are causing a high demand for apartments, which leads to increased rent prices.”
The cities that beat out Colorado Springs on the list were Miami (9 percent), Virginia Beach (7 percent), Milwaukee (7 percent) and Minneapolis (6 percent). Colorado Springs was followed on the list by Oakland (5 percent), Fresno (4 percent), Denver (2 percent), Charlotte (2 percent) and Fairfax (2 percent). “Two were in Colorado, where job growth has proceeded hand in hand with an influx of new renters,” according to the report.
“In rapidly growing Denver, rents rose 2 percent to $1,394, while in Colorado Springs, one-bedroom rents rose from $867.63 to $907.83, for an increase of 4.63 percent.”
According to the Joint Center for Housing Studies at Harvard University (Cambridge, Mass.), there are currently 9 million more Americans renting than a decade ago.
The Abodo report addresses the ways in which politics might affect these renters, as well as how their economic positions might impact their political leanings. The report focused specifically on “swing states” such as Colorado.
“The rent increase in Colorado Springs could result from a number of issues,” Radbil said. “Some industry experts have suggested that landlords are feeling pressured because of increased demand for units while inventory is low. The U.S. rental market saw historically low levels during the mortgage finance boom and has been steadily shifting to historical norms since the mortgage bust. This boom-bust cycle also impacted new apartment starts. With homeownership rates falling, it makes sense for landlords to continue to raise pricing on their rental units, especially in markets with tighter inventory.”
The report can be found here.